The Official Gazette, "Kuwait Today," published in its issue No. 1810 today, Decree-Law No. 94 of 2026 amending certain provisions of Law No. 49 of 2016 concerning public tenders. The Decree-Law exempts all oil operations from the provisions of the law, regardless of their value, and raises the maximum value of contracts that public entities may conclude without authorization from the Central Agency for Public Tenders to one million dinars. It shall come into effect three months after its publication in the Official Gazette. The text of the Decree is as follows:

Article 1

The texts of Articles (2/Third, Items 3 and 5; 19/(First), 26, 31, 39 (Items 1 and 2), 41 (Second Paragraph), 49 (Second Paragraph), 62, 62 bis, 78, and 87) of Law No. 49 of 2016 referred to above are replaced by the following texts:

Article (2/Third, Item 3)

3- Kuwait Petroleum Corporation and its wholly-owned subsidiaries:

With regard to standard procurement cases (goods, contracts, and services), the Agency shall be responsible for procurement contracts executed within the State of Kuwait exceeding twenty million Kuwaiti dinars in value, in accordance with the provisions of this Law. Procurement committees shall be formed within the Kuwait Petroleum Corporation and its wholly-owned subsidiaries to handle contracts with a value below that amount. The minutes of the procurement contracts concluded by these committees shall be submitted to the Agency, the State Audit Bureau, and the Ministry of Finance. This committee shall also be responsible for setting special conditions to facilitate the qualification of small and medium-sized enterprises in coordination with the National Fund for Small and Medium Enterprise Development.

The quorum referred to in the preceding paragraph may be increased by a decision of the Council of Ministers based on a proposal from the Board of Directors of the Kuwait Petroleum Corporation.

Subject to the provisions of Article (152) of the Constitution, all petroleum operations, regardless of their value, are exempt from the provisions of this Law.

The aforementioned procurement committees shall conduct their activities, and appeals against their decisions shall be made in accordance with the rules, procedures, and fees approved by the Board of Directors of the Kuwait Petroleum Corporation, taking into account the principles of transparency, disclosure, commitment, governance, fairness, equal opportunities, and the avoidance of conflicts of interest, with the aim of optimizing the utilization of the funds of the Kuwait Petroleum Corporation and its subsidiaries. The provisions of this Law shall apply only where these rules and procedures are not explicitly stated and do not conflict with them.

The Supreme Petroleum Council has the right to authorize the Corporation or one of its wholly-owned subsidiaries to purchase or import items or to commission contractors to carry out work urgently due to the nature of the materials or work required, or due to urgent or emergency circumstances, in accordance with the rules and procedures it determines, without being bound by any applicable rules or procedures. The Chairman of the Board of Directors of the Corporation shall notify the Supreme Petroleum Council of any contracts concluded in this manner at its next meeting.

Article (5)

The Board of Directors of the Authority shall consist of:

A - (Seven) members appointed by decree upon the nomination of the competent minister and after approval by the Council of Ministers for a non-renewable term of four years. A full-time Chairman and Vice-Chairman shall be appointed from among them. The term of three members of the Board initially formed shall expire two years after their appointment, excluding the Chairman and Vice-Chairman. A decree shall be issued specifying those whose terms expire and appointing their replacements for a term of four years. Their remuneration shall be determined by the Council of Ministers, and their dismissal shall be by decree upon a proposal from the competent minister.

Members must be Kuwaiti citizens of integrity, with experience and specialization in engineering, petroleum, medical, and economic affairs, and in fields related to the work of the Authority. They must not have been convicted by a final judgment of bankruptcy or a felony or a crime involving moral turpitude or dishonesty.

B - A representative of the Fatwa and Legislation Department.

C - A representative of the Ministry of Finance.

D - A representative of the government entity that will supervise the implementation of the tender, without the right to vote.

The selection of a representative from each of the entities mentioned in clauses (b), (c), and (d) shall be periodic, with a maximum term of two years for each representative.

The Board of Directors may seek assistance from experts, whether from the relevant entity or from elsewhere, to clarify any matters related to the exercise of its powers, without granting them voting rights.

Article (19)/ Clause (First)

: First: Public entities subject to the provisions of this Law may enter into contracts for any of the purposes stipulated herein without the Authority's permission, in accordance with the appropriate procedures outlined in the circulars issued by the Ministry of Finance based on the needs of the relevant entity, provided that the contract value does not exceed (KD 1,000,000) one million Kuwaiti Dinars.

Contracts of this nature for the same items or works may not exceed this limit during the fiscal year.

These entities may cooperate in this matter with the Procurement Systems Department, in accordance with the rules and regulations governing group procurement conducted by said Department.

In applying the provisions of the preceding paragraph, it is not permissible to divide a single transaction into multiple transactions with the intention of reducing its value to a level that would exempt it from the jurisdiction of the Authority. The relevant entity shall provide the Ministry of Finance with periodic reports every six months on contracts concluded within the aforementioned limits.

Any increase or decrease in the value of the aforementioned contract shall be reviewed by a decision of the Council of Ministers based on a recommendation from the Council.

Article (26)

The Classification Committee shall classify general contractors into four categories according to their financial and technical capabilities. The Authority shall establish special conditions to facilitate the entry of small and medium-sized enterprises into the fourth category.

The classification shall be periodically reassessed according to the foundations and criteria established by the Classification Committee.

The Executive Regulations of this Law shall specify the application deadlines, registration and classification procedures, the conditions for each, the classification categories, the review process, and the deadlines and procedures for appealing decisions issued in this regard.

Classification does not replace the qualification procedures for bidders, and the relevant entity shall undertake these procedures to ensure that bidders are qualified to execute the contract.

Article (31)

Subject to Law No. (1) of 2016 and Law No. (116) of 2013 referred to above, and the provisions of relevant international agreements, the following conditions must be met by anyone submitting a bid in public or limited tenders, or in cases of direct contracting and practice:

First: The bidder – whether an individual or a company – must be registered in the Commercial Register.

Second: The bidder must be registered in the Suppliers or Contractors Register, or as appropriate to the nature of the tender, practice, or direct contract.

If the bidder is a foreigner, the provisions of paragraph one of this Article and the provisions of Article (23) of Decree-Law No. (68) of 1980 referred to above shall not apply to them, in accordance with the rules specified in the Executive Regulations.

The use of a local agent or commission agent is prohibited in all contracting procedures, in accordance with the rules approved by the Council of Ministers upon the proposal of the competent minister after coordination with the relevant authorities.

Article (39)

1. Before putting the supply of goods or works contracts out to public tender, and after preparing the final designs and separating the design work from the construction work (unless the nature of the work requires otherwise), the relevant authority must prepare the tender documents. These documents must include detailed specifications for each item or work, the scope of the procurement process, the contract execution time and location, and the bid evaluation criteria. The authority must also provide the necessary instructions to contractors, drawings, and accurate bills of quantities detailing the individual items and price schedules. International standards and government procurement specifications must be observed.

2. The executive regulations shall specify the cases in which fees may be charged for providing tender documents to those wishing to participate.

Article (41/ Paragraph 2):

The Council may assign a representative within the agency, as it deems appropriate, to examine the technical aspects of the submitted bids and their conformity to the announced conditions, as well as to verify the availability of technical competency requirements. The Council may seek the advice of experts whose opinions it deems beneficial. The specialist shall submit reports on the results of their research and recommendations to the Council.

Article (49/ Paragraph 2)

The envelopes shall be returned to the agency, and the Council may seek assistance from whomever it deems appropriate within the agency to provide an opinion whenever necessary. The financial envelopes for these offers shall not be opened until the technical recommendation regarding them is received. The financial envelopes for rejected technical offers shall be returned to their owners unopened.

Article (62)

Subject to the international and regional agreements ratified by the State of Kuwait, the Council of Ministers shall designate the competent minister or the relevant public entity to issue a decision regulating the provisions for products granted priority in public procurement.

Article (62 bis)

The Council or the competent procurement entity shall award the tenders submitted by owners of small and medium-sized enterprises, provided they conform to the specifications and conditions and the prices offered do not exceed (10%) of the lowest accepted bids.

The bidder may not combine the priority granted to products according to the provisions of Article (62) with the priority of award granted according to the preceding paragraph in the same tender. In this case, the Council may determine the award according to what it deems appropriate based on one of the two considerations.

The executive regulations specify the terms and conditions for the participation of small and medium-sized enterprises (SMEs) in procurement processes subject to the provisions of this law.

Article (78)

establishes a committee for appeals against Council decisions, attached to the Cabinet, consisting of five members who are legal, financial, and technical experts. Their appointment is by decree – based on the nomination of the relevant minister – for a non-renewable term of three years.